Bali Tightens Rules on Airbnb Listings as Small Hotels Lose Ground to Unlicensed Rentals

According to Indonesia's Kompas newspaper, small hotels in Bali are increasingly being put up for sale online as they lose market share to unlicensed private villas and rentals offered through digital platforms such as Airbnb.

In response, the Bali Provincial Administration is moving to tighten regulation of accommodation booked through digital platforms. Hariyadi BS Sukamdani, chairman of the Indonesian Hotel and Restaurant Association (PHRI), said Indonesia's Ministry of Tourism now requires properties listed on these apps to be officially registered businesses holding a Business Identification Number (NIB) and appropriate permits. Speaking on Tuesday, 22 September 2026, Hariyadi said the government is not banning Airbnb outright, but warned that non-compliant platforms "could potentially be blocked, making it inaccessible from Indonesia."

Hariyadi stressed that the sale of hotels does not signal a downturn in Bali's tourism industry overall. Visitor numbers have already surpassed pre-pandemic levels, reaching roughly 6 million by mid-last year, with further growth expected. He suggested many hotel sales reflect individual business calculations by owners seeking to cash in on profitable opportunities.

Bali Governor Wayan Koster echoed this view, saying hotel sales are largely linked to companies' broader business dynamics—such as diverting Bali profits to cover losses in other regions—rather than weak tourism demand. He has instructed the Bali Tourism Office to coordinate with the Badung Tourism Office and provincial licensing agency to verify registration data for hotels reported for sale. Koster noted that star-rated hotel occupancy in Bali averages a healthy 80–90 percent.

A Kompas review of the Rumah123 property listing site found at least 20 hotels and villas for sale on its front page alone, spanning Kuta, Seminyak, Jimbaran, Ubud, and Amed, with asking prices ranging from Rp 19 billion to Rp 600 billion.